What hourly rate does a South Carolina freelancer need in 2026?
Hourly rate needed in South Carolina by take-home pay
30 billable hours a week, 4 weeks off, $500 a month of business expenses, no health insurance or retirement savings, tax year 2026.
| Take-home pay | Single | Married filing jointly | Tax share (single) |
|---|---|---|---|
| $50,000 | $50/hr | $47/hr | 20.9% |
| $75,000 | $75/hr | $71/hr | 24.9% |
| $100,000 | $102/hr | $96/hr | 27.7% |
| $150,000 | $155/hr | $147/hr | 29.9% |
| $200,000 | $223/hr | $193/hr | 35.7% |
South Carolina income tax for freelancers in 2026
At a glance for 2026: 2 brackets from 1.99% to 5.21% (single filer), a $15,000 standard deduction, and quarterly estimated payments are required once you expect to owe tax.
South Carolina uses graduated rates up to 5.21%. The calculation starts from your federal adjusted gross income.
| Taxable income | Rate |
|---|---|
| $0 – $30,000 | 1.99% |
| Over $30,000 | 5.21% |
| Deduction or credit | Single | Married jointly | Head of household |
|---|---|---|---|
| Standard deduction | $15,000 | $30,000 | $22,500 |
How South Carolina treats self-employment deductions
- Half of self-employment tax: deductible. South Carolina now starts from federal AGI, so the deductible half of SE tax carries through.
- Self-employed health insurance: deductible. The federal self-employed health insurance deduction is part of federal AGI and carries through.
- SEP-IRA / solo 401(k) contributions: deductible. SEP-IRA and solo 401(k) contributions deducted for federal AGI carry through to South Carolina.
How the calculator handles South Carolina
- Act 110 of 2026 (H.4216) rewrote South Carolina's income tax starting with tax year 2026: two brackets (1.99% on taxable income under $30,000; 5.21% minus $966 at $30,000 and above, i.e. 5.21% marginal above $30,000), one schedule for all filing statuses. SCDOR Information Letter #26-20 confirms the 2026 figures. Brackets are indexed in later years.
- Starting in 2026, South Carolina begins with federal AGI (not federal taxable income) and does not allow the federal standard/itemized deductions or the federal QBI, tips, overtime, car-loan-interest or senior deductions.
- The South Carolina Income Adjusted Deduction (SCIAD) shown as the standard deduction ($15,000 single/MFS, $22,500 HoH, $30,000 MFJ) phases out in proportion to federal AGI: single from $40,000 to $95,000, HoH from $60,000 to $142,500, MFJ from $80,000 to $190,000. Modeled.
- Optional 3% flat rate on active trade or business income (SC Code § 12-6-545, Form I-335) is available to sole proprietors, but income reasonably related to the owner's personal services is excluded, so it usually helps freelancers little; not modeled.
- Top-rate reductions under Act 110 can start no earlier than tax year 2027. Dependent exemption, retirement-income and age-65 deductions, the $200-capped SC EITC and other credits are not modeled.
Local income taxes in South Carolina
South Carolina counties and cities do not levy a local income tax.
South Carolina estimated tax payments
- Who must pay: Required if you expect to owe $100 or more with your SC1040 after withholding and credits.
- 2026 due dates: April 15, 2026, June 15, 2026, September 15, 2026, January 15, 2027
- Safe harbor: Generally no penalty if timely estimates equal 100% of the prior-year SC tax (110% if prior-year AGI exceeded $150,000), or if you pay at least 90% of the current-year tax. SCDOR Information Letter #26-20 explains adjusting 2026 payments for Act 110.
- Form: Form SC1040ES (or MyDORWAY)
Federal estimated payments follow their own schedule. Work them out with the quarterly estimated tax calculator.
Business costs for a South Carolina freelancer
| LLC formation fee | $110 Articles of Organization (South Carolina Secretary of State, S.C. Code § 33-44-1204). |
|---|---|
| Annual report | None. An LLC not taxed as a corporation files no annual report and pays no corporate license fee. |
| Franchise or minimum tax | None for sole proprietors or LLCs taxed as sole proprietorships/partnerships (the corporate license fee applies only to LLCs taxed as corporations). |
| Gross receipts tax | None at the state level. Check your city or county for any local business license requirement. |
You don’t need an LLC to freelance as a sole proprietor. Compare the tax treatment in LLC vs sole proprietor for freelancers.
Frequently asked questions
Does South Carolina have a state income tax on freelance income?
Yes. South Carolina has a progressive income tax with a top rate of 5.21% for tax year 2026. Freelance profit is taxed as ordinary income, on top of federal income tax and self-employment tax.
Do freelancers in South Carolina pay state estimated taxes?
Yes, generally when Required if you expect to owe $100 or more with your SC1040 after withholding and credits.. Payments use Form SC1040ES (or MyDORWAY) and are due April 15, 2026, June 15, 2026, September 15, 2026, January 15, 2027.
Sources for South Carolina figures
Verified October 22, 2026 against official South Carolina and IRS publications.
- H.4216 (Act No. 110 of 2026), ratified text - South Carolina Legislature
- SC Information Letter #26-20: Individual Income Tax Reform - SCDOR
- Information about H.4216 - SCDOR
- Estimated Income Tax payments due September 15? Read Information Letter #26-20 first - SCDOR
- 2026 SC1040ES Individual Declaration of Estimated Tax - SCDOR
- 2025 I-335 Active Trade or Business Income Reduced Rate Computation - SCDOR
- SC Revenue Ruling #98-11: Single Member Limited Liability Company - SCDOR
- S.C. Code Title 33 Chapter 44 (§ 33-44-1204 Fees) - South Carolina Legislature
Estimates for educational and planning purposes only. HourFloor does not provide tax, legal or financial advice. Verify your numbers with a qualified tax professional.